Breaking: NHL franchise may be forced to relocate before next season.

A major development may force one NHL team to seriously consider the possibility of relocation prior to the start of next season. The City of Glendale is looking to get out of their agreement with the Arizona Coyotes  prematurely during a meeting scheduled to take place on Wednesday night. Accoding to the official release from the City of Glendale they will look at "All other legal actions and remedies necessary to effectuate cancellation or termination of the agreement." This situation is turning ugly quickly, and it also lends a great deal of credibility to an earlier report that the Coyotes were in serious danger from TSN's Rick Westhead last month. The Coyotes at the time issued an extremely critical denial of Westhead's report however now it seems it was indeed accurate. Nick Wood an attorney representing the Coyotes has since released this statement in response to the City of Glendale's planned meeting this evening.

“This is a blatant attempt to renege on a valid contract that was negotiated fairly and in good faith and in compliance with all laws and procedures. In the event the City Council initiates any action to revoke, repeal or otherwise rescind the agreement, the Coyotes will immediately take all actions available to them under the law against the City of Glendale.”

The NHL has also released a statement on this troubling situation:

"We have been advised by the Coyotes that the City of Glendale's contentions are without merit and we fully expect the Coyotes to continue to play at the Gila River Arena and for the City to continue to honor its obligations to the Coyotes. After everything that has transpired, it is extremely disappointing that the City of Glendale would do anything that might damage the Club."

The NHL will of course deny this until they Coyotes are actually moved, however it does appear that the City of Glendale has some legal ground to stand on.

The state, its political subdivisions or any department or agency of either may, within three years after its execution, cancel any contract, without penalty or further obligation, made by the state, its political subdivisions, or any of the departments or agencies of either if any person significantly involved in initiating, negotiating, securing, drafting or creating the contract on behalf of the state, its political subdivisions or any of the departments or agencies of either is, at any time while the contract or any extension of the contract is in effect, an employee or agent of any other party to the contract in any capacity or a consultant to any other party of the contract with respect to the subject matter of the contract.

One thing is certain this is a very ugly situation for the Coyotes and their ownership group, if the arena contract was to be terminated they would almost certainly be forced to move to avoid tens of millions of dollars in financial loses.